COAC Recommends a Prospective Antidumping and Countervailing Duty Assessment System
Arlington, VA - Today the Commercial Operations of Customs and Border Protection (COAC) recommended that the United States adopt a prospective system to assess antidumping and countervailing (AD/CVD) duties. Retailers’ ability to trade fairly and compete effectively is severely undermined by the current retrospective system. The Retail Industry Leaders Association (RILA) applauds COAC’s recognition that the current system is untenable and their recommendation for change.
“America is the only country in the world that maintains a retrospective system,” said Stephanie Lester vice president of international trade. “The current system is remarkably resource-intensive and unpredictable. Predictable and reliable global sourcing is fundamental to maintaining American economic competitiveness, and U.S. trade remedy laws should be updated to reflect this modern reality.”
“In order to effectively and efficiently administer the AD/CVD laws as well as maximize revenue collection, we recommend that CBP [U.S. Customs and Border Protection] work together with other agencies (U.S. Department of Treasury and Department of Commerce) to jointly design a prospective AD/CVD duty assessment and collection system,” the COAC recommended.
Under the current AD/CVD assessment system, neither the importer nor CBP knows what is a fairly traded price or an importer’s duty liability at the time a product is entered. The risk associated with this uncertainty is unsustainable for American companies and undermines CBP’s ability to collect the full amount of duties owed.
“We thank the COAC for their leadership on this issue and look forward to continuing to work with lawmakers and the agencies to advance this much-needed reform,” Lester concluded.
RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad
“America is the only country in the world that maintains a retrospective system,” said Stephanie Lester vice president of international trade. “The current system is remarkably resource-intensive and unpredictable. Predictable and reliable global sourcing is fundamental to maintaining American economic competitiveness, and U.S. trade remedy laws should be updated to reflect this modern reality.”
“In order to effectively and efficiently administer the AD/CVD laws as well as maximize revenue collection, we recommend that CBP [U.S. Customs and Border Protection] work together with other agencies (U.S. Department of Treasury and Department of Commerce) to jointly design a prospective AD/CVD duty assessment and collection system,” the COAC recommended.
Under the current AD/CVD assessment system, neither the importer nor CBP knows what is a fairly traded price or an importer’s duty liability at the time a product is entered. The risk associated with this uncertainty is unsustainable for American companies and undermines CBP’s ability to collect the full amount of duties owed.
“We thank the COAC for their leadership on this issue and look forward to continuing to work with lawmakers and the agencies to advance this much-needed reform,” Lester concluded.
RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad